Bangladesh to offer cash incentive to exporters as in FY25 for H1 FY26

The incentive rates will be between 0.30 per cent and 10 per cent, depending on the product category, a recent Bangladesh Bank circular said.

Bangladesh will continue to offer incentives against exports from 43 sectors in the first half of FY26 to boost exports.
The incentive rates will be between 0.30 per cent and 10 per cent, depending on the product category, the Bangladesh Bank said.
This benefit was offered to those 43 sectors in FY25.
Diversified jute products and leather products will receive a cash incentive of 10 per cent.

This benefit was offered to those 43 sectors in FY25, i.e., from July 1, 2024 to June 30, 2025.

The circular states that the same incentives will continue to be provided for the first six months of the current fiscal.

Diversified jute products and leather products will receive a cash incentive of 10 per cent.

Businesses, however, are unhappy about the reduction in the incentive period by six months as the current sluggishness in the economy has been hurting businesses, according to a domestic media outlet.

The Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA) termed the decision ‘wrong policy’.

Fibre2Fashion News Desk (DS)